MIRA INFORM REPORT

Report No. :	304565
Report Date :	28.01.2015

IDENTIFICATION DETAILS

Name :	VIKAS GEMS
Registered Office :	DC 6030/40, Bharat Diamond Bourse, BKC, Bandra (East), Mumbai – 400051, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment :	1992
Capital Investment :	Rs. 120.349 Millions
Partnership Reg. No.:	BA53820
IEC No.:	0391171127
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AACFV2553P
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer, Trader, Exporter and Importer of Cut and Polished Diamonds.
No. of Employees :	22 (Approximately) [Office in Mumbai: 8 + Factory in Surat: 10 + Branch in Surat: 4]

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established partnership concern having satisfactory track record. The concern has shown a significant growth in its turnover during 2014. Trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct and as per commitment. The concern can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

NOT AVAILABLE

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Suresh Sachani
Designation :	Accounts Manager
Contact No.:	91-9920968368
Date :	23.01.2015

LOCATIONS

Registered Office :	DC 6030/40, Bharat Diamond Bourse, BKC, Bandra (East), Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-40231728
Mobile No.:	91-9920968368 (Mr. Suresh Sachani)
Fax No.:	91-22-33929219
E-Mail :	svs3669@gmail.com
Area :	612 Sq. Ft.
Location :	Owned
Factory :	301/ 304/ 313/ 316, Diamond Village, Jadakhadi, Mahidharpura, Surat – 395003, Gujarat, India
Tel. No.:	91-261-2453612
Fax No.:	91-261-2453611
E-Mail :	vikas.vitthani88@gmail.com
Area :	2620 Sq.Ft.
Location :	Owned

PARTNERS

Name :	Mr. Makadbhai D. Patel Vithani
Designation :	Partner
Address :	Mumbai, Maharashtra, India
Date of Birth/Age :	68 Years
Qualification :	SSC
Experience :	45 Years
Name :	Mr. Shambhubhai D. Patel Vithani
Designation :	Partner
Address :	Surat, Gujarat, India
Date of Birth/Age :	67 Years
Qualification :	SSC
Experience :	45 Years
Name :	Mr. Marsibhai D. Patel Vithani
Designation :	Partner
Address :	Surat, Gujarat, India
Date of Birth/Age :	57 Years
Qualification :	SSC
Experience :	37 Years
Name :	Mr. Ishwarbhai S. Patel Vithani
Designation :	Partner
Address :	Surat, Gujarat, India
Date of Birth/Age :	46 Years
Qualification :	Engineer
Experience :	25 Years
Name :	Mr. Bharatbhai M. Patel Vithani
Designation :	Partner
Address :	Mumbai, Maharashtra, India
Date of Birth/Age :	45 Years
Qualification :	Graduate
Experience :	25 Years
Name :	Mr. Vikasbhai N. Patel Vithani
Designation :	Partner
Address :	Surat, Gujarat, India
Date of Birth/Age :	26 Years
Qualification :	Engineer
Experience :	10 Years

KEY EXECUTIVES

Name :	Mr. Suresh Sachani
Designation :	Accounts Manager

BUSINESS DETAILS

Line of Business :	Manufacturer, Trader, Exporter and Importer of Cut and Polished Diamonds.
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Cut and Polished Diamonds
Countries :	Hongkong
Imports :
Products :	Rough Diamonds
Countries :	Belgium
Terms :
Selling :	Cash and Credit (90 Days and 120 Days)
Purchasing :	Cash and Credit (90 Days and 120 Days)

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Rough Diamonds to Cut and Polished Diamonds	Carats	1000 Per Month	650 Per Month

GENERAL INFORMATION

Suppliers :

Reference:	Srusti Diam
Name of the Person (with Designation):	Mr. Pradeep (Account Manager)
Contact Number:	91-22-61303030
Since How Long Known:	3 Years
Maximum Limit Dealt:	Rs. 30.000 Millions
Experience :	Payment Behaviour: Good Market Goodwill: Good Overall: Good
Remarks :	Company is good and they are satisfied by dealing with the subject.

Customers :

Wholesalers

Reference:	Davariya Brothers
Name of the Person (with Designation):	Mr. Chandu Bhai
Contact Number:	91-22-67573333
Since How Long Known:	23 Years
Maximum Limit Dealt:	Above Rs. 50.000 Millions
Experience :	Product Quality: Good Delivery Behaviour: Good Overall: Good
Remarks :	Since since long time they are dealing with the subject and there are no negative remarks against subject.

· Laxmi Dia Jewel Private Limited

· Design Creation

No. of Employees :

22 (Approximately) [Office in Mumbai: 8 + Factory in Surat: 10 + Branch in Surat: 4]

Bankers :

Bank Name:	Andhra Bank
Branch:	Opera House Branch, Mumbai, Maharashtra, India
Name of the Person (with Designation):	Mr. Sunil (Officer)
Contact Number:	91-22-23697780 91-9004001804 (Mr. Ranjit)
Name of Account Holder:	VIKAS GEMS
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	2009
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Rs. 55.000 Millions
Account Operation:	Satisfactory
Remarks: As claimed by Mr. Sunil an Officer that the subject having satisfactory track record for banking transaction.

Auditors :
Name :	Rashmin Mehta and Company Chartered Accountants
Address :	10, Zavon Building, Charni Road, Mumbai – 400004, Maharashtra, India
E-Mail :	rashmin@rmco.in
Memberships :	--
Collaborators :	--
Sister Concerns:	--

CAPITAL STRUCTURE

As on 31.03.2014

Capital Investment :
Owned :	Rs. 120.349 Millions
Borrowed :	--
Total :	Rs. 120.349 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Note: Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Partners Capital	120.349	110.137
(b) Profit and Loss Account	0.000	0.000
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	120.349	110.137
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	24.814	0.000
(b) Trade payables	64.386	12.816
(c) Other current liabilities	0.003	0.076
(d) Short-term provisions	6.089	1.745
Total Current Liabilities (4)	95.292	14.637
TOTAL	215.641	124.774
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	9.076	8.657
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	1.441	1.436
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	10.517	10.093
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	82.607	70.698
(c) Trade receivables	113.704	41.005
(d) Cash and cash equivalents	1.033	0.830
(e) Short-term loans and advances	7.780	2.148
(f) Other current assets	0.000	0.000
Total Current Assets	205.124	114.681
TOTAL	215.641	124.774

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Income	277.504	79.722
		Other Income	(0.991)	0.112
		TOTAL (A)	276.513	79.834
Less	EXPENSES
		Cost of Goods Sold	256.634	70.734
		Sales, Administration and Other Expenses	3.644	1.826
		Salary to Partners	0.900	0.000
		Interest on Partners Capital	1.800	1.800
		TOTAL (B)	262.978	74.360
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		13.535	5.474
Less	FINANCIAL EXPENSES (D)		0.133	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		13.402	5.474
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.057	0.006
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		12.345	5.468
Less	TAX (H)		4.309	1.714
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		8.036	3.754

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	2.90	4.71
Operating Profit Margin (PBDIT/Sales)	(%)	4.88	6.87
Return on Total Assets (PBT/Total Assets}	(%)	5.72	4.38
Return on Investment (ROI) (PBT/Networth)		0.10	0.05
Debt Equity Ratio (Total Debt/Networth)		0.21	0.00
Current Ratio (Current Asset/Current Liability)		2.15	7.84

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Partners Capital	110.137	120.349
Profit and Loss Account	0.000	0.000
Net worth	110.137	120.349
long-term borrowings	0.000	0.000
Short term borrowings	0.000	24.814
Total borrowings	0.000	24.814
Debt/Equity ratio	0.000	0.206

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	79.722	277.504
		248.090

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	79.722	277.504
Profit	3.754	8.036
	4.71%	2.90%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last two years	Yes
12]	Profitability for last two years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	Yes
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.46
UK Pound	1	Rs.92.77
Euro	1	Rs.69.03

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	DIV
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.